Lawmakers asked to consider legacy of the Legacy Amendment

Twenty years from now, when the people of Minnesota look back at the billions of tax dollars spent to preserve and protect the state’s cultural and natural resources, what will they point to as evidence that money was used wisely?

Legislative Auditor Jim Nobles asked members of the House Legacy Funding Finance Committee Monday to keep that question in mind over the next few months as they consider legislation that will appropriate millions of dollars more for the upcoming biennium. That money is raised by the Legacy Amendment, which voters approved in 2008. It increased the state sales tax by three-eighths of 1 percent to provide dedicated revenue streams for Minnesota’s natural and cultural resources.

“I think, clearly, the message from the voters was – 25 years of extra money and, at the end of that, we want to see something that we really contributed as a legacy that is enduring,” Nobles said.

Michelle Mitchell, executive budget officer for Minnesota Management & Budget, gives members of the House Legacy Funding Finance Committee an overview of legacy funding in Minnesota Jan. 26. Photo by Paul Battaglia

When the amendment passed, it was estimated the new tax would raise $240 million to $300 million per year, and those projections have proven accurate. Having just looked at the accounting records for the past few years, Nobles said $260 million was raised in 2012, $280 million in 2013 and $288 million in 2014.

More money should be available for the upcoming biennium. Michelle Mitchell, executive budget officer for Minnesota Management & Budget, said estimates indicate there will over $600 million in Legacy funds available during fiscal years 2016 and 2017.  

Despite those resources, Rep. Dean Urdahl (R-Grove City), the committee chair, warned those who have previously received Legacy funding not to assume they will get the same amount, or more, as they come back to the committee in the days and weeks to come.

“You may or you may not,” Urdahl said. “This has always been something that I’ve cautioned against, instilling the feeling of entitlement.”